Bryah completes sale of Tumblegum South gold deposit
Bryah Resources has banked $500,000 in cash from the sale of its non-core Tumblegum South gold deposit to Star Minerals.
The sale includes 9 million Star Minerals shares worth $1.8m and 7 million performance rights that convert into shares upon achievement of certain milestones.
Along with an additional 2 million shares from the sale of exploration licence E52/3739 in the western Bryah Basin, Bryah Resources (ASX:BYH) now holds a 20.75% interest in Star Minerals, allowing it to retain exposure to any upside from Tumblegum South.
This increases to 30% through conversion of the performance rights on the start of gold production at Tumblegum South.
“The company is delighted to have successfully monetised this gold asset and look forward to the Star Minerals team bringing Tumblegum South into production in the new future,” managing director Neil Marston said.
“The sale of Tumblegum South brings in valuable cash to Bryah and frees our team to continue our exploration focus on high-grade copper-gold and manganese in the Bryah Basin.”
Star Minerals is due to list on the ASX on 27 October under the ticker SMS.
Bryah’s recent aircore drill program discovered multiple gold targets across the Lady Alma Layered Igneous Complex at its Gabanintha project with more assays pending.
The Lady Alma Layered Igneous Complex has a history of gold production with the historic Gabanintha gold mine just a few kilometres to the north, where Dominion Mining mined shallow open pits to produce 150,000 ounces of gold from 1987-1991.
It is also believed to have significant potential to host nickel-copper-gold and platinum group elements.
Separately, partner OM Holdings had started reverse circulation drilling at the Bryah Basin manganese JV in September.
This will test some potentially concealed manganese targets identified by recent gradient array-induced polarisation geophysical surveying at the Brumby Creek prospect, focused on the Bryah West, Redrum, Mollie and Clover targets.
This article was developed in collaboration with Bryah Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.